Straker Insider Buyers Net NZ$83k Despite 16% Stock Decline

Straker Limited (ASX:STG) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 16% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of NZ$346.9k is now worth NZ$429.4k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Straker Insider Transactions Over The Last Year

The insider Scobie Dickinson Ward made the biggest insider purchase in the last 12 months. That single transaction was for AU$314k worth of shares at a price of AU$0.44 each. That implies that an insider found the current price of AU$0.46 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Straker share holders is that insiders were buying at near the current price.

Straker insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.37. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Straker

Straker is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Straker Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Straker insiders own 44% of the company, worth about AU$13m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Straker Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Straker insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Straker. Case in point: We've spotted 3 warning signs for Straker you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.